Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling Approach

This study presents a mathematical model for optimizing warehouse-location decisions in supply-chain network design. Previous studies have focused on the facility-location problem and provided fortification plans and solutions. However, these studies did not consider multi-capacity warehouses. The p...

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Main Author: Tareq Oshan
Format: Article
Language:English
Published: IEEE 2024-01-01
Series:IEEE Access
Subjects:
Online Access:https://ieeexplore.ieee.org/document/10677358/
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author Tareq Oshan
author_facet Tareq Oshan
author_sort Tareq Oshan
collection DOAJ
description This study presents a mathematical model for optimizing warehouse-location decisions in supply-chain network design. Previous studies have focused on the facility-location problem and provided fortification plans and solutions. However, these studies did not consider multi-capacity warehouses. The proposed model identifies optimal warehouse locations, sizes, and branch-warehouse assignments. Additionally, it determines fortification measures to mitigate the risk of warehouse failure. The model is formulated as a mixed-integer nonlinear problem and subsequently linearized using standard techniques combined with a proposed method based on average-probability approximation. A case study of a Canadian company illustrates the model’s efficacy. Sensitivity analysis results demonstrate that when the numbers of fortified and built warehouses are equal, failure probability has no effect on the objective function of the model. Thus, this study presents a comprehensive model that assists businesses in decision-making regarding their warehouse operations, aiming to lower the risk of failure and optimize warehouse infrastructure utilization.
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spelling doaj-art-c199834ff81f4bd0bffdcec37402499b2025-08-20T01:54:57ZengIEEEIEEE Access2169-35362024-01-011213091413092410.1109/ACCESS.2024.345782410677358Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling ApproachTareq Oshan0https://orcid.org/0000-0002-9175-2835College of Engineering, Al Ain University, Abu Dhabi, United Arab EmiratesThis study presents a mathematical model for optimizing warehouse-location decisions in supply-chain network design. Previous studies have focused on the facility-location problem and provided fortification plans and solutions. However, these studies did not consider multi-capacity warehouses. The proposed model identifies optimal warehouse locations, sizes, and branch-warehouse assignments. Additionally, it determines fortification measures to mitigate the risk of warehouse failure. The model is formulated as a mixed-integer nonlinear problem and subsequently linearized using standard techniques combined with a proposed method based on average-probability approximation. A case study of a Canadian company illustrates the model’s efficacy. Sensitivity analysis results demonstrate that when the numbers of fortified and built warehouses are equal, failure probability has no effect on the objective function of the model. Thus, this study presents a comprehensive model that assists businesses in decision-making regarding their warehouse operations, aiming to lower the risk of failure and optimize warehouse infrastructure utilization.https://ieeexplore.ieee.org/document/10677358/Fortified warehousesmixed-integer mathematical modelsupply-chain network designwarehouse failure risk
spellingShingle Tareq Oshan
Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling Approach
IEEE Access
Fortified warehouses
mixed-integer mathematical model
supply-chain network design
warehouse failure risk
title Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling Approach
title_full Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling Approach
title_fullStr Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling Approach
title_full_unstemmed Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling Approach
title_short Warehouse Network Design With Fortification Considerations: A Mixed-Integer Nonlinear Modeling Approach
title_sort warehouse network design with fortification considerations a mixed integer nonlinear modeling approach
topic Fortified warehouses
mixed-integer mathematical model
supply-chain network design
warehouse failure risk
url https://ieeexplore.ieee.org/document/10677358/
work_keys_str_mv AT tareqoshan warehousenetworkdesignwithfortificationconsiderationsamixedintegernonlinearmodelingapproach